Positive start for the new taxi company

Cambodge Soir
16-08-2008

The Sino-Khmer joint venture is transporting between 200 and 300 customers a day. In September, 60 cars will join the fleet of vehicles.

One month after the first rides of his 12 taxis, Lim Sovann, Executive Director of the Global Cambodia Trade Development Company gives a positive assessment. “We strongly believe that our business will become successful over a long term period. We don’t expect to make any money during the first year”, explains the director who considers his prices and the quality of service encouraging. Every day, between 200 and 300 customers are using the taxi service. For the moment the fleet includes 12 cars.

This taxi company is a Sino-Khmer joint venture. Its particularity: each vehicle is equipped with a taxi meter. The first two kilometres cost one dollar, then every 200 meter is charged 10 cents. The director of Global Cambodia Trade Development declares having invested more than a million dollars. By the end of September, 60 new Chinese-made cars will join the taxi fleet.

It is now the question whether this company will succeed. Six months ago, a Vietnamese company offering a similar service closed down. A few years ago, the public bus service launched by the government ended as a total failure. A sign of how difficult it is for the Cambodians to change their transportation habits. Indeed, how can one compete against the string of motodops and tuk-tuks which are available at every street corner?